In 2024, the electric car market reached a significant milestone. Global electric car sales exceeded 17 million units, marking a 25% increase compared to the previous year. This is a huge leap, as the number of electric cars sold in 2024 was 3.5 million more than in 2023.
For comparison, the total electric car sales in 2020 were smaller than the rise seen in just one year. The growth in electric car sales in 2024 shows that more people around the world are making the switch to clean, energy-efficient vehicles.
China Leads the Charge in Electric Car Sales
China has been the largest market for electric cars, with over 11 million electric cars sold in 2024. That’s more than two-thirds of the global sales. This is a remarkable rise, especially considering that the total electric car sales worldwide in 2022 were around 16 million.
China’s electric car market continues to expand rapidly due to several factors, including strong government support, affordable pricing, and the growing appeal of electric cars over traditional gasoline vehicles.
Electric car sales in China grew by nearly 40% in 2024, and nearly half of all new cars sold in China were electric.
One major factor driving the growth of electric car sales in China is price competitiveness. Battery electric vehicles (BEVs) are becoming more affordable, making them a more attractive option for consumers compared to traditional cars.
The introduction of China’s trade-in scheme in April 2024 helped boost sales even further. This scheme offers financial incentives for consumers who trade in their old cars, with a higher bonus for those choosing electric cars.
As of the end of 2024, over 6.6 million people had used this incentive, with 60% choosing electric cars.
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The U.S. Electric Car Market
In the United States, electric car sales have continued to rise, reaching 1.6 million cars in 2024. However, the growth rate was much slower than in previous years, increasing by just 10%.
This is a significant slowdown from the 40% growth seen in 2023. Despite this, electric cars still make up over 10% of total car sales in the U.S., showing that electric cars have become an important part of the American car market.
A major factor driving electric car sales in the U.S. is the Clean Vehicle Tax Credit. This program provides buyers with up to USD 7,500 off the price of a new electric car.
However, only 20 electric car models were eligible for this tax credit in 2024, limiting the options for consumers.
Despite the slowdown in sales growth, electric cars have seen steady sales in the U.S., helped by the federal tax credit and the increasing availability of electric vehicle (EV) models from various manufacturers.
Europe Faces Challenges in Electric Car Sales
The electric car market in Europe has experienced slower growth in 2024. Around 20% of all new cars sold in Europe were electric, maintaining the sales share from the previous year.
However, growth in the electric car market in countries like Germany and France slowed down. This is mainly due to the reduction in subsidies and government incentives for electric vehicles in these countries.
In Germany, subsidies for electric cars ended in December 2023, and in France, tax breaks and subsidy programs were gradually reduced.
Despite these challenges, some countries in Europe saw increases in electric car sales. The United Kingdom saw a rise in the share of electric cars to 30% of all car sales in 2024, up from 24% in 2023.
This increase is attributed to the UK Vehicle Emissions Trading Scheme, which encourages manufacturers to sell more electric cars to meet emissions targets.
Other European countries, such as Norway, also continue to lead the way in electric car adoption, with almost 88% of all new car sales in the country being battery electric vehicles (BEVs).
Electric Car Sale’s Impact on Global Oil Consumption
The rise in electric car sales has had a noticeable effect on global oil consumption. By the end of 2024, the global fleet of electric cars had displaced over 1 million barrels of oil per day.
This represents a significant reduction in global demand for oil, as more people opt for clean energy solutions instead of relying on traditional gasoline vehicles. In China, for example, around one in ten cars on the road is now electric, while in Europe, the ratio is closer to one in twenty.
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The Future of Electric Car Sales
The future of electric car sales looks promising. Global sales are expected to exceed 20 million in 2025, representing around 25% of all car sales worldwide.
With the cost of electric cars continuing to decrease and more governments offering financial incentives, the electric vehicle market is set for even greater growth.
In China, the government is expected to continue supporting the electric car market through subsidies and incentives, with projections that electric car sales will reach over 14 million in 2025.
In Europe, while subsidies are being phased out, the introduction of stricter CO2 emissions standards will likely push more consumers and manufacturers toward electric vehicles.
In the United States, the electric car market is expected to continue growing, but it may face challenges if the Clean Vehicle Tax Credit is reduced or eliminated in the future. Nevertheless, the overall outlook for electric car sales remains positive.
Conclusion
The growth of electric car sales in 2024 has been remarkable, especially in key markets like China, the United States, and Europe. While each region faces its own unique challenges, the global trend towards electric vehicles is clear.
As technology improves, costs fall, and government support continues, electric cars will play an increasingly important role in shaping the future of the global car market.
Source: Global EV Outlook 2025
